BASIC REQUIREMENTS AND QUALIFICATION FOR BOI LOAN

The bank of industryis a development finance institution in Nigeria which targets businesses that engage in manufacturing and processing activities. Target sub-sectors of BOI include Agro-processing, Solid Minerals, Information Technology, Oil and Gas and Creative Industry. However, Bank of industry only finances enterprises or companies and not an individual person or group of persons hence, the company or enterprise must be duly registered and you will be required to provide the CAC registration number and financial record before you can proceed with your application.Tax information may be requested too.

The bank is principally set up to finance industrial equipment used in manufacturing. The Bank does not finance land and building which are expected to be financed from equity. The bank does not disburse the loan to the borrower in cash but to the vendors and suppliers of the equipment. BOI’s loan support to the SME starts from N5 million.

As part of the fiduciary responsibility in managing funds under its care, Bank of industry requires that you pledge some assets to secure you loan. However, the Bank also accepts other forms of security subject to adequate coverage of the loan being provided to you. Types of security the Bank accepts include:

Legal mortgage on a landed property. The property must be duly registered with a Certificate of Occupancy

Please note that the Bank is willing to share assets previously pledged to other lenders provided the Bank’s loan is adequately covered in the arrangement. Also note that the Bank is willing to accept third party collateral.

Startup businesses

While the Bank under its general risk acceptance criteria requires a prospective borrower to have at least three years acceptable performance track record, it can also lend to start-ups at its discretion and on a case-by-case basis. A startup would need to provide proof of cognate experience in its business area and would need to have a highly qualified management and operational team with sound management structure.

While applying for loan you will need to support your application with the following documents;

Micro Credit

SME/Large Enterprise

1. Formal Letter of Application
2. Photocopy of Certificate of Registration
3. Constitution and Bye-laws of Cooperative Society (only for Cooperative Societies)
4. Business Plan
5. Four (4) passport photographs of the Promoter (business owner)
6. Photocopy of the Current Tax Clearance Certificate of the Business Enterprise and the Promoter.
7. Photocopy of International Passport or Driver’s License or National Identity Card of the Promoter.
8. Bank Statement of the Business Enterprise for a period of one (1) year (for existing business).
9. Sales record for six (6) months and operating expenses.
10. Evidence of availability of Collateral Security (e.g. landed property, Individual Guarantor, etc.).

1. Formal Letter of Application
2. Photocopies of Certificate of Incorporation and Certified True Copy of Memorandum and Articles of Association of the Company.
3. Photocopies of the Certified True Copy of Forms C02 and C07.
4. Business Plan.
5. Photocopy of title documents to project site (Statutory Certificate of Occupancy or Deed of Assignment).
6. Photocopy of Title Documents (Statutory Certificate of Occupancy or Deed of Assignment) to the Collateral Security. (This must be a landed property in an urban center).
7. Approved Building Plan (If new building).
8. Bill of Quantities or Contractor’s Estimate of Cost to be incurred on Factory Building.
9. Valuation Reports on Factory Building(s) (for existing projects) and property offered as Collateral Security.
10. Quotations for items of plant and machinery (at least 3 quotations from different sources).
11. Three (3) years most recent Audited Accounts of the company (for existing company).
12. Three (3) years most recent Tax Clearance Certificate for the Company and two (2) Directors.
13. Four (4) recent passport photographs of each of the two Directors and the Company Secretary.
14. Evidence of appointment of a Company

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